Quarter: first June 2018 SCC NEWSLETTERcompco.co.sz/.../uploads/2018/08/Newsletter-June-2018.pdf ·...

Quarter: first June 2018

Economic Growth Through Fair

Competition 1

SCC NEWSLETTER SWAZILAND COMPETITION COMMISSION



Competition 2

NEWS OUTLINE

Page 3 – The

Commission’s New

Face.

Page 4 – MOUs

signed.

Page 10 – Learning,

training &

development.

Page 14 – SCC

approves three

acquisitions.

Page 16 - Consumer

Protection.

FOREWORD: CEO

Welcome to the first edition of our quarterly

newsletter. As always we are excited to

share with you the developments of the

Commission. This has particularly been an

interesting and active quarter and it was

with great pleasure that we compiled this

edition for you.

In this quarter the Commission placed

significant focus on staff development and capacity building. The motivation for this is

the Commission’s efforts to enhance its internal capacity in-order to improve the ability

to deliver on its mandate, which assures maximum benefit to you the consumer and

economic participants. In this quarter alone the Commission has had two elaborate

training programmes that staff members were engaged in, at different forums.

An aspect we are most proud of is that in this quarter, every technical staff member

was exposed to one training programme or another and this gives us great pride in our

ability to attain interventions that are able to cover the entire technical staff

complement. This we believe will guarantee our progress. The training interventions

included a four (4) day workshop facilitated to the Commission by the Taiwan Fair

Trade Commission; the completion of an attachment of Four (4) Staff members to the

Zambian Competition and Consumer Protection Commission and participation in the

66th Law Spring Meeting in Washington DC. All of which we tell you more about in this

edition.

Another interesting development we are excited to share with you are the partnerships

that the Commission has forged and formalized in this quarter. The Commission

concluded two partnership agreements through signing of Memorandum of

Understanding (MOU’s). These were with Competition Commission South Africa (CCSA)

and the Swaziland Public Procurement Agency (SPPRA). Through the collaborations

that will be facilitated by these partnerships, we are sure to enhance our efficiencies

and advance the work that we do as a Commission.

We have also aimed to keep you abreast on the work on the ground, through our

departmental report briefs. The edition contains reports from our Mergers and

Acquisitions as well as Consumer Protection departments. We truly trust that you will

find this a pleasurable read and we look forward to your interaction with us on it

through our various interactive platforms.



Competition 3

SCC VALUES:

Independence We carry out our

business and reach

decisions without

fear, favour or undue

influence Transparency We ensure clear

processes in all

operations

Integrity We are honest and

professional in

executing our

mandate

Teamwork We work as a team

to achieve our

mandate

Accountability We are all

responsible for our

actions, behaviour

and decisions

The Commission’s New Face

Flying solo… meet our newbie!!!

Say HELLO to Nolwazi ooo

Well, where do we start??? She’s an

absolute delight… a marvel to work

with… Nothing escapes this

meticulous legal eagle. Meet

Nolwazi Kunene, joining the

Commission as Manager Cartels

and Enforcement. Geared up to sail

this ship and bring it to greater

heights, Nolwazi constantly sets her

mind to discover new and

alternative solutions to challenges.

What did we tell you? She’s all

work and no play!



Competition 4

MOUs signed

The Commission in its strive to attain efficiency in the execution of its mandate has joined hands

and signed Memorandums of Understanding with the Swaziland Public Procurement

Regulatory Agency (SPPRA) and Competition Commission South Africa (CCSA).

MOU signed with SPPRA

The Commission entered into a

Memorandum of Understanding

(MOU) with SPPRA for purposes of

mutual exchange and sharing of

information concerning matters of

mutual interest.

The MOU explores

complementarities between the

mandates of SPPRA and the

Commission in respect to the

promotion and maintenance of competition, as these two institutions operate within a similar

field, the business environment.

Speaking at the signing ceremony,

the Commission’s Board Chairman

Sibusiso Motsa said the signing of

the MOU is a symbol of recognition

of the constant need for mutual

monitoring and supervision in

matters of mutual interests.

“Constant monitoring and

supervision will facilitate for the

effective performance of both



Competition 5

institutions’ duties and the achievement of their respective mandates in terms of the

Competition Act of 2007 and the Public Procurement Act of 2011”, Motsa said. The

Commission’s Board Chairman further explained that the objective of SPPRA speaks to the

Commission’s mandate which is to encourage competition amongst businesses in the country.

Speaking in the same vein,

SPPRA Board Chairperson

Harry Nxumalo said one of

the key objectives of the

Agency is to create

efficiencies in government

expenditure. One way of

achieving this, Nxumalo

added, is ensuring value

for money in procurement.

“Value for money is realized when there is maximum competition”, Nxumalo explained.

The MOU signed by the two institutions serves to set out the arrangements for co-operation

and co-ordination between SPPRA and the Commission in performing their respective

regulatory functions in terms of the Public Procurement Act of 2011 and the Competition Act

of 2007.



Competition 6



Competition 7

MOU signed with Competition Commission South Africa

The Commission signed an MOU with its South

African counterpart, Competition

Commission South Africa, to promote

cooperation in the field of competition law

enforcement and policy; and to ensure

conditions for the effective functioning of

markets for goods and services.

The MOU which will foster cooperation in a number of

activities aims to create favorable conditions for the

development of bilateral relations. Speaking on behalf of

the Minister for Commerce, Industry and Trade the

Honourable Mr. Jabulani Mabuza, Mr. Robert Dlamini said

the Ministry applauds both Competition Authorities for

recognizing the need to jointly create favorable conditions

for the development of bilateral relations on competition

law and policy matters. Dlamini further explained that the

MOU will help to ensure conditions for the effective

functioning of markets for goods and services.

The Chief Executive Officer of the Swaziland

Competition Commission Ms. Thabisile Langa said

the collaboration of the two Competition

Authorities will strengthen competencies in cross

border issues. Langa explained that businesses

tend to extend their business activities beyond

their country’s borders.

“It is also important that businesses realize that

competition policy is there to help them innovate



Competition 8

and improve their business processes in order to survive in this world that does not have

product and services borders” Langa said.

The Commissioner of Competition

Commission South Africa

Tembinkosi Bonakele stressed on

the issue of cross boarder cartels

being setbacks to development.

“Competition laws must be

propagated across the region; it

does not help to have them in

isolated countries. And am very happy that Eswatini has been part of these efforts in our region,

we now have the majority of southern countries with operating competition laws” Bonakele

said.



Competition 9



Competition 10

Learning, training and development

SCC staff and Board of Commissioners Trained

In a training workshop facilitated by three technical personnel from the Taiwan Fair Trade

Commission, Deputy Director Mr. Hu, Inspector Mr. Hwu and Inspector Mr Hsu; the

Commission’s technical staff and Board of Commissioners were trained on competition law,

consumer policy

and procedure,

research and

advocacy in-order

to build

competency and

effectiveness of

the Commission.

The four-day

training was made possible through the 20th Joint Ministerial Conference (JMC) on Economic

and Technical Cooperation between the Kingdom of Eswatini and the Republic of China on

Taiwan.

The Commission holds great value in investing in its human capital. To successfully implement

the mandate of the Commission, staff and Board of Commissioners should be continuously

capacitated through competition law and consumer law trainings in-order to strengthen their

cognitive muscles enabling them to make valid contributions to the Commission.

In an interview with staff members, appreciation and gratitude were expressed towards the

Taiwan Fair Trade Commission for sharing the knowledge they have. The staff also thanked the

Swaziland Competition Commission for seeing value in continuously advancing them.



Competition 11

Stakeholders’ workshop

Through continuously seeking sponsored training and learning opportunities on matters of

competition law and policy, the

Commission hosted a workshop for

its stakeholders. The workshop was

facilitated by three technical

personnel from the Taiwan Fair Trade

Commission, Deputy Director Mr. Hu,

Inspector Mr. Hwu and Inspector Mr

Hsu.

The workshop was centered around three

these topics; Merger Review & &

Assessments, the impact of anti-competitive practices on business and Consumer protection I on

obligations. The technical personnel critically analyzed and discussed the topics.

The well attended workshop was aimed at widening stakeholders’ scope of understanding ing of

competition law and policy matters and allowed for clarification and responses to raised

questions.

Raising awareness amongst

stakeholders is one of the objectives

that the Commission always strives to

achieve. It is critical for the

Commission that stakeholders

understand matters of competition

law and policy so that they can

better understand the work that the

Commission does.



Competition 12

Meetings and attachments

The Commission together with over 3000 legal practitioners

and economists from 60 countries attended the 66th Antitrust

Law Spring Meeting in Washington D.C. Representing the

Commission was the CEO Ms. Thabisile Langa and the

Commission’s Legal Advisor Ms. Thembelihle Dube. The two

representatives participated in discussions on competition

and consumer protection law; and learnt from an esteemed

group of government enforcers, economists, private

practitioners, in-house counsel, and academics.

In a bid to improve the Commission’s efficiency, four staff

members were attached with the Competition and

Consumer Protection Commission of Zambia, a more established Commission with more than

20 years of competition regulation in Zambia. Their attachment extended from the previous

quarter into the ending quarter, resulting in a five months attachment. This was to enable the

staff members to see the completion of investigations and research assignments they were

involved in during the period of attachment.

In an interview, the “four” expressed their

utmost appreciation to the Commission as

well as the COMESA Competition

Commission and the Competition and

Consumer Protection Commission of Zambia

(CCPC) for granting them such an

opportunity. “It was a great learning

experience” Mr. Mabaso, a staff member

who was attached expressed himself. “We

should intensify our efforts to be like them”, Mabaso added.



Competition 13

The ‘four’ described the attachment as a two way learning experience as their investigative

skills were strengthened and they also shared their expertise with CCPC. “I benefitted a lot, I

was included in trainings and initiatives such as the Financial Inclusion Project and the ZICTA

(Zambia Information Communication and Technology Authority) Type Approved Training”,

Ayanda Ziyane said. Ziyane was also involved in a sensitization initiative through which the

office of Public Relations and the Consumer Protection Department collaborate and tour the

provinces to educate consumers on their rights and obligations. “This provided an

understanding of the strategies that are useful to ensure optimal reach to consumers for

education purposes, which are also applicable to Eswatini because of the similar cultural and

traditional structures in both countries”, Ziyane further explained.

Terrence Mabaso added that they also started projects during their attachment. “I started the

Tourist Accommodation Pricing Study and when I left, the study was at the data collection

stage” Mabaso briefly explained.

Echoing Mabaso’s sentiments,

Mbuso Simelane said he was

involved in a number of initiatives.

“I learnt quite a number of

aspects that go into the analysis

of mergers” Simelane said; he

further added that he provided

the CCPC Mergers Team with a

lecture of a thorough

understanding of financial

statements giving a clear understanding on what to look for when provided with unstructured

financials in mergers analysis.

The last of the ‘four’, Nkosinathi Makhubula, explained that the attachment broadened his

understanding and approach to best practices in competition law and policy issues. “The

main area of experience to which I was exposed to was the dawn-raid, which we haven’t

done so far in Eswatini”, Makhubula said. He added that in the dawn-raid he was involved

from the planning stage through to the analysis stages. “I also got to present my cases to the



Competition 14

Technical Committee which determines cases to be taken to the Board for adjudication”, he

added.

SCC approves three acquisitions

The Commission has approved three merger

transactions. The approved mergers are the

acquisition of fifty percent (50%) shares in Macnabs

Refrigeration (Pty) Ltd by Mr. Charles Buluma; the

acquisition of sixty percent (60%) shares in SD

Electrical (Pty) Ltd by Mr. Bhutana Cyric Broadwell

and the acquisition of Dr. Vincent Mhlanga’s Portion

2 of Farm no. 505 by Eagles Nest (Pty) Ltd.

The acquisition of 50% shares in Macnabs Refrigeration (Pty) Ltd by Mr. Charles Buluma was

approved without conditions. Pre-acquisition, Mr. Charles Buluma owned 10% shareholding in

Macnabs Refrigeration (Pty) Ltd. As a result of the approved acquisition, Mr. Charles Buluma

has attained a controlling interest by owning 60% shares post acquisition.

The target firm, Macnabs Refrigeration (Pty) Ltd, is a company duly incorporated in terms of

the laws of the Kingdom of Eswatini. It is involved in repair, sale, service and installation of air

conditioning and refrigeration.

The decision to approve the acquisition without conditions was based on whether the

transaction is likely to result in the substantial lessening or prevention of competition. Analysis

reflected that the market shares in the relevant markets, market concentration, countervailing

power and barriers to entry will not be affected and hence the transaction is unlikely to result

in the substantial lessening or prevention of competition.

Second to be approved is the acquisition of 60% shares in SD Electrical (Pty) Ltd by Mr. Bhutana

Cyric Broadwell. The acquirer, Mr. Bhutana Cyric Broadwell, is a business man whose business

interests range from the provision of lodge facilities (accommodation & hospitality) to

engineering and construction services whilst SD Electrical is a company duly incorporated in



Competition 15

terms of the laws of the Kingdom of Eswatini and is currently based at the Matsapha Industrial

Site. The company is wholly owned by Mr. Steven Rugg and consists of electrical contractors

who provide a wide range of commercial services.

The Commission considered the products of the firms in Eswatini and concluded that the

relevant market is the provision of electrical products and services in Eswatini. As a result of the

transaction, Mr. Bhutana Cyric Broadwell will acquire sixty percent (60%) shares in SD Electrical.

Consequently, Mr. Bhutana Cyric Broadwell will replace Mr. Steven Rugg as the controlling

shareholder in SD Electrical with a sixty percent (60%) shareholding, and Mr. Steven Rugg will

assume a minority shareholding of forty percent (40%). Post-merger, there will be no change

in the structure of the market.

The market shares in the relevant markets, market concentration, countervailing power and

barriers to entry will not be affected; thus the transaction is unlikely to result in the substantial

lessening or prevention of competition. Therefore, the transaction was approved without

conditions.

The last approved acquisition is that of Portion 2 of Farm No. 505 by Eagles Nest (Pty) Ltd from

Dr. Vincent Mhlanga. The underdeveloped farm is situated in the Manzini District.

When analyzing the transaction, the Commission considered the products of both parties and

concluded that the relevant market is commercial land for farming. The market shares in the

relevant market and market concentration will not be significantly altered as a result of the

transaction. Countervailing power and barriers to entry will also not be affected post

acquisition. The Commission concluded that post-acquisition, the transaction is not likely to

cause substantial lessening or prevention of competition in the market and as such approved

the acquisition without conditions.



Competition 16

Consumer Protection

The Consumer Protection Department has the mandate to improve consumer welfare in

Eswatini for the sustainable economic growth of the country. Consumer complaints, Consumer

Trends and Analysis, Research and Publications specific to consumer issues in the competition

spectrum as well as consumer education and advocacy are the main mandate components

for the department.

78% consumer cases closed

The Commission has resolved 78% of

consumer cases reported, 56% of

which were amicably resolved and

22% of the cases were not

substantiated since claims brought

forth by consumers were proven to

be untrue. In respect to the 56%

resolved cases, consumers were compensated by the respective retailers / service providers

either through refund, repair or replacement. The resolved consumer cases represent

E63 070.00 as redress value to complainants.

In this quarter, the Commission has also resolved 3 more cases from the period between April

2017 and March 2018 which were still under investigation. The resolution led to the affected

consumers being compensated either through refund, repair or replacement. The redress

value for the period between April 2017 and March 2018 to E103 572.00.

Research and Publications

The Consumer Protection Department has been involved in various consumer focused tele-

conferences with the United Nations Conference on Trade and Development (UNCTAD) in

respect to cooperation, E-Commerce and vulnerable consumers as well as the Federal Trade



Competition 17

Commission (FTC) in respect to research topics for introduction of Tribunals for consumer

protection.

In respect to E-Commerce, the department has developed a proposal to undertake a study

in Eswatini with the Commission’s Policy and Research Department. This research aims at

better understanding the penetration of electronic commerce among consumers and traders

alike. The government of Eswatini, having put in place the financial inclusion strategy as well

as the e-government strategy, this research aims at adding valuable information to the

already existing work on the subject related to electronic commerce. This research will also be

Eswatini’s contribution to the worldwide fraternity of Competition and Consumer Protection.

Consumer Education and Advocacy

The department, as part of the strategic objectives for the period under review will conduct

engagements where consumers from the rural areas will be visited and engaged on the role

of the Commission in protecting consumer rights and promoting consumer welfare. The

engagements are targeted at empowering consumers to know their rights and have the

confidence to enforce them. A proposal has been developed for this engagement and it is

expected that it will be rolled out before the end of 2018.

For the Consumer Protection Department, the expectation is that there will be more activity,

moving forward, as the department gains momentum and the Commission’s strategy is

continually implemented, towards ensuring economic sustainability through fair competition

and consumer protection.

Investigations

In an effort to protect consumers, the Commission has instituted an investigation into the

trading practices of one of the telecommunications companies in Eswatini under Section 11

of the Competition Act, No. 8 of 2007. This case is under investigation and redress amounts

may only be determinable should there be fines imposed by the Board.



Competition 18

For more information, visit the Commission’s offices in Mbabane at Golf Course

Park, Eveni, Matjolo Road or contact us at:

2404 0111/0421

P. O. Box 1976

Mbabane

H 100 Eswatini

EMA Email: [email protected]

fax: +268 2404 0342

mailto:[email protected]

Date post:	17-Sep-2020
Category:	Documents
Upload:	others
View:	2 times
Download:	0 times

Quarter: first June 2018 SCC NEWSLETTERcompco.co.sz/.../uploads/2018/08/Newsletter-June-2018.pdf ·...

Documents